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Transportation Law
Transportation Law in laymens terms
| Question | Answer |
|---|---|
| Review for Transportation Law 1) If a shipment moves by truck or air and not on through bill of lading; how are liabilities found | a. Mode that actually caused damage |
| 2) What is the Himalaya Clause | a. Allows parties to include “conditions related to other modes of transportation in the air waybill”. b. Purpose – extend the defenses and limitation of liability allowed under the Warsaw Convention |
| 3) What are Ocean Liner Rate Conferences | a. Groups or Liners that set rates for members of their conference |
| 4) Know the various different ships: Liners, Tramps, charters,etc. | a. Bulk Tankers, Container Ships, Break-Bulk Cargo, Ocean-going barges, rolo |
| 5) What is a Charter Party | a. contract between the owner of a vessel and the charterer for the use of a vessel |
| 6) What are the types of Charter Parties | a.The Voyage Charter. hires the vessel for a single voyage. b.The Time Charter. hired for a specific amount of time. owner manages, charterer selects ports, controls operation. c.Demise or Bareboat Charters. charterer takes vessel, legal and financial. |
| 7) What is an NVO | a. Non Vessel Operator |
| 8) What is the function of an NVO | a. Consolidate small shipments into container loads and negotiate container load rates with carriers for a specific volume of containers per year |
| 9) What are the liabilities of an NVO | a. Issue own BOL and are directly liable to the shipper for loss, damage and delay under the terms of their BOL |
| 10) Do NVO’s have to issue Bill of Ladings | a. Yes |
| 11) What are the functions of an Ocean Freight Forwarder | a. Do not issue their own BOL, Not liable for Loss, damage or delay or cargo. b. Primarily acts as an intermediary between the shipper and the ocean carrier to arrange shipments. |
| 12) What is the Intermodal Safe Container Act | a. “Overweight container law” b. Incentives for private sector to comply with overweight regulation c. use of EDI d. Eliminates providing separate certification e. Simplified certification |
| 13) What is an exculpatory clause | a. Any clause that would free a party from liability provided exculpatory evidence could be provided. |
| 14) What is the Jones Act | a. Merchant Marine Act of 1920 b. Prohibits foreign flagged ships from transporting cargo between US Ports c. This Cabotage law d. US companies could not compete with foreign operators e.Foreign ships can operate but have to use US flags of convenie |
| 15) What is a multimodal Bill of Lading | a.BofL issued for containerized multimodal shipping from origin to destination. Unlike through bill of lading, the principal carrier or the freight forwarder takes on full liability for the entire journey also called combined transport bill of lading |
| 16) What is COGSA | a. Carriage of Goods by Sea Act, 1936 (US Version of the 1924 Hague Rules) |
| 17) What are the limitations under COGSA | a. Applies Tackle to Tackle b. Himalaya clause may extend applicability |
| c. Carrier Requirements COGSA | i. Ship Seaworthy, Issue(BOL) identifying cargo, quantity, weight and condition. 1.BOL is Prima Facie evidence; notice of latent defects must be given within 3 days. iv. Statute of limitation is 1 year from delivery carrier’s negligence is void. |
| d. Carrier Defenses COGSA | i. UNSeaworthiness , failure to properly man, equip, supply or make fit for the reception of cargo ii. 17 enumerated defenses available to carrier iii. Shipper recovery limited to $500 |
| 18) What does an Ocean Freight Forwarder do | a. Act as an intermediary between the shipper and the ocean carrier to arrange for shipment |
| 19) What is a through Bill of Lading | a. Also known as “Multimodal Bill of Lading” – issued by a carrier or multi-modal operator covering at least two modes of transportation. b. Assigns all liability to a single carrier for the entire duration of the transport |
| 20) What is an intermediary | a. Refers to a third party that plays a role in the arranging for , or providing transportation by carriers for shippers |
| 21) What is a broker | Under the 49USC a. Pg. 221 – a person, other an employee as a principal or agent sells, negotiates for, or solicitation, advertisement or otherwise as selling providing or arranging for, transportation by motor carrier for compensation. |
| 22) Are brokers liable for loss and damage claims | a. Only if the selected Carrier fails to pay, “Contingency Cargo Liability” policy |
| 23) What is an Air Freight Forwarder | a.serves as dual role i.To shipper, the airfreight FF is an indirect carrier. it receives freight from shippers under its air tariff, consolidates ii. To carrier, airFF classified as carriers, it takes responsibility for shipment, issues own air bill. |
| 24) Does Ocean Freight Forwarder issue Bill of Ladings | a. No |
| 25) Are Ocean Freight Forwarders liable as carriers | a. No |
| 26) What are the Hamburg Rules | a. rules governing the international shipment of goods, resulting from the United Nations International Convention on the Carriage of Goods by Sea adopted in Hamburg on 31 March 1978 |
| 27) What is an SDR | Special Drawing Right a. SDR is a standard replacing the gold standard, US, UK, Japan, Euro Currencies |
| 28) Kirby v. Norfolk Southern | a. Shipment from Australia to Huntsville on a through bill of lading; b. US Supreme Court held: NORFOLK to $500 package limitation; |
| 29) What are Hazardous Materials | a. Hazardous Materials, defined by DOT as b. “a substance or material that the Secretary of Transportation has determined is capable of posing an unreasonable risk to health, safety and property when transported in commerce” |
| 30) Who has to properly identify Hazardous Materials | a. Shippers b. Shippers are charged with knowing if their products are HazMat and with properly c. marking, placarding, documenting, providing emergency response information, training employees, and registering with DOT |
| 31) What are imported goods | a. Any good that can be classified used the harmonized tariff schedule b. Exports are any good sent from the US so Import is any good sent to the US |
| 32) How can different categories enter the United States | a. Harmonized Tariff Schedule |
| 33) Shipper bears responsibility for | proper identification of import or export goods. 34) Definition of Exporter |
| 35) Definition of Informed Compliance | As per imports a. “informed compliance”- shared responsibility between importers and customs to foster a more efficient clearance of goods through borders |
| 36) Who may be importer of records | a. Importer of record may be the owner, purchaser, consignee, or licensed customs broker |
| 37) Which shippers have to register with DOT regarding Hazardous Materials | a. Shippers of certain HazMat are required to register with DOT including shippers of: i. Radioactive materials ii. Explosives iii. Materials toxic by inhalation iv. Shipment over 5,000 lbs. v. Single hazmat shipments vi. Shipments that require a pl |
| 38) Which packing group has the category of Most Dangerous Goods | a. Packing Group I – Great Danger |
| 39) What is the Container Security Initiative | a. Seeks the assistance of foreign governments to assist in allowing prescreening of “high risk” cargo |
| 40) What are Advanced Cargo Manifest requirements | a. Requires ocean carriers to provide 24 hours advanced notice to U.S. Customs at a foreign ports b. Does not apply to aircraft e. Vessels must also make a formal entry 48 hours before arrival |
| 41) What is Custom Trade Protection against Terrorism | a. Joint initiative to enhance the supply chain and security |
| 42) What is Customs and Border Patrols mission | b. Protecting U.S. revenue collecting duty, taxes, and fees on international trade d. Protecting against unfair foreign competition, illegal articles, arms, munitions, currency, terrorists acts and fraudulent activity to avoid duties, taxes or fees |
| 43) What is responsibility of importer of records | b. Provide a complete and accurate description of goods c. a correct tariff classification d. Obtain a customs ruling on description, f. a correct declared value g. country of origin h. trademarked or copyrighted goods i. Providing assurance compli |
| 44) What are requirements for legal entry of an import | a. Legal entry requires that the goods be authorized to enter by customs and that proper estimate of duty be paid |
Created by:
Alivallo
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